A Disadvantage of Vertical Integration Is That It

question 99

Multiple Choice

A disadvantage of vertical integration is that it

• A)creates exit barriers.
• B)improves coordination of activities.
• C)increases the cost of improvement of coordination and control.
• D)creates entry barriers.
• E)avoids time consuming tasks.

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Definitions:

Cognitive Dissonance

A psychological state in which an individual experiences discomfort or conflict due to holding contradictory beliefs, attitudes, or values at the same time.

Social Judgment

The process by which individuals evaluate and form opinions about other people and social situations.

Rejection-Then-Retreat

A persuasion technique where a larger request is made knowing it will be rejected in order to increase the likelihood that a smaller subsequent request will be accepted.

Consensus/Social Proof

A psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior in a given situation.